Latest / The SPY Trader / Tech Bulls Charge: Amazon Jumps 13%
Transcript
- 0:00Welcome back to Spy Trader , the only podcast that gives you the market moves before your morning coffee is even brewed .
- 0:07I'm your host , Barry Bullish , and it's 6 am on Friday , October 31st , 2025 , Pacific Time .
- 0:15The ghosts and goblins might be out tonight , but the bulls are firmly in charge this morning , wiping away yesterday's dip .
- 0:23Futures are strongly up , led by the Nasdaq100 , which is indicating a jump of over one percent in early trading .
- 0:31We are set to close both the week and the month in positive territory , driven almost entirely by blockbuster earnings from Big Tech that are overshadowing persistent macroeconomic gloom .
- 0:43The main story today is the incredible bifurcation within the ' Magnificent Seven' tech giants .
- 0:49While Meta Platforms and Microsoft recently spooked the market with warnings about steep capital expenditures for AI data centers , Apple and Amazon came roaring back to save the day .
- 1:01Apple reported strong quarterly earnings , fueled by robust iPhone sales , while Amazon delivered a true barnburner , jumping over thirteen percent in premarket trading thanks to a massive twenty percent increase in its cloud revenue segment , AWS .
- 1:19This immediate positive momentum confirms that , right now , companyspecific results are winning out against broader fears .
- 1:28Elsewhere , we saw a split decision in the Energy sector , where Chevron was up on strongerthanforecast results , but Exxon Mobil was slightly down in premarket trading .
- 1:38And keep an eye on Netflix , whose stock is spiking on the announcement of a 10forone stock split , potentially paving the way for its inclusion in the Dow Jones .
- 1:49On the macroeconomic front , we have a confusing picture .
- 1:53The Federal Reserve delivered its second consecutive 25basis point rate cut , moving the target range down to 3.75 to 4.00 percent .
- 2:03While this is the lowest level in three years and reflects the Fed’s focus on employment risks , the bond market is having none of it .
- 2:12The 10year Treasury yield is stubbornly sitting near 4.11 percent .
- 2:18This high longterm yield acts as a restrictive force on the economy , pushing up the cost of capital for virtually all businesses and challenging the market’s relief over the shortterm rate cut .
- 2:29Our core analysis is this : we are in a period of TechDriven Optimism at a Macroeconomic Crossroads .
- 2:37The strength of companies like Amazon and Apple , with verifiable cash flow and growth , is currently too strong for the market to ignore .
- 2:46The Nasdaq100 , represented by the Invesco QQQ Trust , is up approximately 4.1 percent just this month .
- 2:55However , the high capital expenditure worries and the structural issue of the rising 10year yield mean volatility remains high .
- 3:04For recommendations , let's keep it simple and grounded .
- 3:08First , for core portfolio accumulation , continue to dollarcost average into diversified ETFs like the Vanguard S&P 500 ETF , VOO , or the iShares CORE S&P 500 ETF , IVV .
- 3:24These capture the overall positive trend driven by the fifty largest US companies that are currently benefitting from these strong earnings .
- 3:32Second , for tactical exposure , you must be overweight technology right now .
- 3:37The momentum is undeniable .
- 3:40We recommend maintaining exposure to the Invesco QQQ Trust , which is leading the rally , or the Technology Select Sector SPDR Fund , XLK .
- 3:50Specifically , Amazon , ticker AMZN , is a prime example of execution being rewarded , making it a key stock to watch given its massive jump .
- 3:59Third , for risk management , don't forget fixed income .
- 4:03While the Fed cut rates , the high longterm yields mean longduration bonds remain risky .
- 4:10Stick to diversified total bond funds like the Vanguard Total Bond Market ETF , BND , or the iShares Core U.S.
- 4:18Aggregate Bond ETF , AGG , as a stability hedge against potential equity volatility .
- 4:25Steer clear of being overly aggressive on longduration instruments like TLT while the 10year yield holds this high 4.11 percent level .
- 4:34That’s the playbook for today .
- 4:36Have a fantastic Friday , and we'll catch you on the next episode of Spy Trader .